Power authority: Parties, flowers, free AARP cards

Published 12:00 am, Thursday, August 11, 2011

ALBANY -- An audit of the New York Power Authority released Wednesday criticized $340,000 in questionable expenses, including $160,000 spent on parties and picnics; $10,000 for "empathetic" flowers and other gifts; and $21,000 worth of complimentary AARP memberships for its retirees.

In general, the audit found NYPA did an appropriate job controlling costs and monitoring expenses.

In a response included in the comptroller's report, NYPA defended many of the questionable costs as morale-boosting and necessary, though it said it would take steps to draw down or discontinue the free AARP memberships and gift-giving.

NYPA operates 17 power facilities around the state. In 2010, it reported net income of $181 million.

NYPA President and CEO Richard Kessel announced his resignation two weeks ago; it takes effect Sept. 6. State Inspector GeneralEllen Biben is examining Kessel's practice of granting low-cost power to politically connected nonprofits. Kessel is the former head of the Long Island Power Authority, which is also under investigation by the inspector general's office.